Dress Barn to buy Tween Brands in $157 mln stock deal

Dress Barn Inc will buy teen-apparel seller Tween Brands Inc about $157 million in stock, as the women's clothing retailer looks to capture a larger share of the tween girls apparel market. The deal values the operator of the Justice retail chain at about $6.22 a share, representing a premium of 20 percent to Tween Brands' Wednesday close of $5.18. The news sent Tween Brands' shares up about 28 percent to $6.61 on the New York Stock Exchange, while Dress Barn's shares rose as much as 8 percent to $14.31 Thursday morning on Nasdaq. "The Justice concept, which offers an attractive mix of well-priced fashion for girls aged 7 to 14, will diversify and complement our existing business," David Jaffe, president and chief executive officer of Dress Barn, said in a statement. Under the deal, each common share of Tween Brands... [read full story]                    

powered by